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Project Logistics Next Level

Project Logistics 4.0 (PL4.0) is more than just a slogan. A convergence of trends and technologies promises to redesign the way things are delivered.

Project Logistics 4.0 to most shipper’s executives will raise eyebrows. If they’ve heard of it, they are likely confused about what it is. If they haven’t learned of it, they’re likely to be cynical of what they see as another piece of marketing, an empty slogan. When we take a closer look at what’s behind PL4.0 it shows some robust emerging currents with strong potential to change the way shippers and project logistics service providers work. It may be too much to say that it is another project logistics industrial revolution. But call it whatever you like; the fact is, PL4.0 is gathering momentum, and executives should carefully monitor the coming changes and develop their strategies to take advantage of the new chances.

We define Project Logistics 4.0 as the next level strategy in the digitization of the project logistics sector, driven by 4 disruptions: the astounding rise in IT applications and connectivity. and perhaps soon augmented-reality systems and improvements in transferring digital processes to the physical world.

A lot of these digital technologies have been in preparation for some time. Some are not yet ready for implementation. But many processes and technologies are now at a point where their greater reliability and lower cost are starting to make their entrance in the project logistics industry. However, shippers are not entirely conscious of the evolving technologies. XELLZ looked at manufacturing leaders and only 48% of EPC and manufacturers consider themselves ready for PL4.0.

These changes and many others like them are sure to be far reaching, affecting every corner of the project logistics supply chain. The pace of change, however, will most likely be not as fast than what has been seen in other sectors, where change is more common and frequently. In coming years, XELLZ doesn’t expect anything like the kind of project capital investment as what we have seen in the past. Still, the client base we have talked to estimate that 40 to 50 percent of today’s project will need upgrading or replacement.

To get the most out of PL4.0 process development and technological innovation, and to get to the next level with this new business model, shippers will have to also prepare for a transformation. EPC, Manufacturers, and other industries should begin today to prepare for the new project logistics approach, and think about how to structure their logistics and supply chain. Companies will find that a “two step” project logistics transformation can help them deploy the novel approach by deploying pilot projects, while also preserving mission-critical projects.

For more information on this innovative approach XELLZ is happy to arrange an introductory meeting with your company.