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The digitalisation of logistics and transport: an urgent necessity for Italian industry

15.10.2024

At the SMART FACTORY DAY event, organised by Zucchetti on 9 October 2024, several speeches illustrated the situation of the manufacturing sector in Italy, Europe and the world, market trends and new business models that will shape the near future.

In 2023 and 2024, the Italian manufacturing sector demonstrated a range of performance levels across different industrial sectors.

Italy has outperformed other Eurozone countries,benefiting from both domestic demand and exports. In contrast, Germany is experiencing a recessionary downturn in its industrial sector, which is facing intense global competition from China and the United States, which, in turn, are witnessing steady growth.

It is anticipated that Italian companies will experience adecline in domestic demand within the Eurozonesoon. This is due to the German recession and the continued imposition of trade sanctions on Russia following the invasion of Ukraine.

The positive dynamics ofexports to China, which showedstrong increasesin value (+16.8%) and volume (+9.0%), remain unchanged despite the current uncertain international political climate.

In a world that is moving twice as fast as it did in the past, the so-called “black swans” i.e. those rare,unforeseen events that cause major effects, e.g. the pandemic caused by the new coronavirus, the war in Ukraine, the war in Israel, etc., have also multiplied in the last five years. They are having a disruptive impact on global supply chain management, resulting in increased costs for raw materials, transportation and energy.

In such a complex context, factories require solutions that facilitate:

• interconnectionbetween thecompanyand itssuppliers,transporters,distributorsandcustomers,
• a“systemic” approachtoanalysing processes,
• a shift from a “mechanical” to an“organic” viewof the company, i.e. the company is no longer understood as the simple sum of its individual parts and functions, but the company is strongly interdependent on the context in which it operates.

Where should investments be directed to enhance competitiveness and recover margins?

Digitalisationis themain toolthat will enablecompaniestomaintain their competitive edge in the market, as Italy still has significant scope for improvement.

TheDESI -Digital Economy and Society Index -acknowledges the investments made in recent years thanks toIndustry 4.0and its derivatives. However, it also notes thatItaly is weak in terms of data analysis, used by only 26.6% of companies, compared to the European average of 33.2% (17thposition in comparison with other Member States).Only 5% of companies are currently utilising artificial intelligence, which is significantly below the 2030 targets set for the EU as a whole (8% compared to 60% for Italy and 75% for the EU).

One of the main areas for improvement in our country isdigital skills: Currently, only 45.8% of people in Italy have at least a basic level of digital proficiency, which is below the EU average of 55.6% and ranks us 23rd among Member States.

Despite significant investments in digitisation of production,companiesin themanufacturing sectorcanenhance efficiency and profit marginsbydigitising logistics and transport. These are two business processes where digital maturity is below European standards.

Which levers to focus on to meet market challenges?

There are three levers on which the
Zucchetti offer lays its foundations:

• ESG

• TRANSITION 5.0

• AI

Zucchetti Digital Supply Chainis a distinctive digital solution forcomprehensive supply chain management: it encompasses production, logistics, transportation, distribution, and after-sales. It integrates advanced software to achieve Environmental, Social, and Governance (ESG) and Transition 5.0 objectives through a smart use of artificial intelligence, establishing a robust foundation for effective models in any business.

For logistics and transport, thanks to theSMA.I.L:)-SMARTINTEGRATEDLOGISTICSplatform from Replica Sistemi, it is possible to optimize the supply chain at 360° with integratedWMS(warehouse management system),YMS(yard management system) andTMS(transportation management system).

Right from the factory, Zucchetti's software solutions make it possible to optimise the flow of incoming raw materials, with sophisticatedDemand Planning and Sales & Operation Planningapplications likeCybertec'sCyberPlan. With Advanced Planning & Scheduling software it is possible to simulate different production scenarios at finite capacity quickly and continuously, with immediate visibility of the impact on the production plan.

Integrated withOPERAMES(Manufacturing Execution System) it interconnects and activates all machinery and hardware devices used for production.

In the factory there are not only machines, but also many people.

The challenge ofIndustry 5.0is not only to achieve digitisation and environmental sustainability, but also to make thefactorymore "human-centric".

Zucchetti's product range for the manufacturing sector also includesAsset Management software for energy management and plant maintenance. This is designed to help companies become more sustainable by enabling them tobenefit from Transition 5.0 funding.

“Ask yourselves not what man can do with new technologies, but what new technologies can do for man”with this provocative question,Fabio Candiusso,CEO Novalia - Supply Chain consultant and lecturer, invites everyone torethink factories as cooperative ecosystems, capable of accommodating the complexity of the new digital Supply Chains, which not onlyintegrate processes, but also alltechnological tools.

Italy is the second largest manufacturing nation in Europe and the sixth largest in the world. Toremain competitiveand continue to offerquality productsandservicesthatrespect the environment and people,Italian manufacturing should invest in the right direction. This will ensure the country's continued success in the global market.

The necessary technologies, skills and passion are already in place; the challenge is to identify them!