// ROBOTICS AND SMART FACTORIES TERM

First Mile

The "first mile" in logistics refers to the initial leg of a product's journey, typically from the manufacturer or supplier to a distribution center or shipping hub.

First Mile — illustration from Wikipedia
Image via Wikipedia

TECHNICAL DEFINITION

The first mile logistics segment encompasses the initial transportation phase of goods, moving them from their point of origin (e.g., manufacturer, supplier, farm) to the first consolidation point, such as a warehouse, distribution center, or port.

BACKGROUND

The Industrial Revolution, sometimes called the First Industrial Revolution in contrast to the subsequent Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succeeding the Second Agricultural Revolution. Beginning in Great Britain around 1760, the Industrial Revolution had spread to continental Europe and the United States by about 1840. Economic historians agree that the onset of the Industrial Revolution is the most important event in human history, comparable only to the adoption of agriculture with respect to material advancement.

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SYNONYMS & ALIASES

  • Origin logistics
  • initial pickup
  • upstream logistics
  • supplier pickup

USAGE NOTE

Optimizing the first mile can significantly impact the overall efficiency and cost of the supply chain.

DEVELOPERS

Organizations developing technology related to First Mile.

  • Siemens Digital Industries

    Siemens provides software and automation technologies that optimize manufacturing operations from the initial stages, including product lifecycle management (PLM), manufacturing operations management (MOM), and industrial automation for raw material handling and initial processing, directly impacting the 'first mile' efficiency and visibility.

  • SAP

    SAP offers extensive enterprise resource planning (ERP) and supply chain management (SCM) solutions that are critical for managing the 'first mile' of manufacturing. This includes procurement, supplier relationship management, inventory management for raw materials, and initial production planning, ensuring traceability and efficiency from the outset.

  • Rockwell Automation

    Rockwell Automation specializes in industrial automation and digital transformation, providing control systems, software, and services that are used to automate and optimize the initial processing of raw materials, material handling, and the very first steps of the production line, crucial for a robust 'first mile' in manufacturing.

  • Honeywell Intelligrated

    Honeywell Intelligrated focuses on material handling automation and warehouse solutions, which are vital for the 'first mile' of manufacturing by managing the receiving, storage, and internal distribution of raw materials and components before they enter the main production process, improving flow and reducing waste.

  • Oracle

    Oracle's comprehensive cloud supply chain management (SCM) and enterprise resource planning (ERP) solutions enable manufacturers to manage their 'first mile' effectively. This includes functionalities for sourcing, procurement, inventory management, and early-stage manufacturing planning, providing end-to-end visibility and control.

  • Kinaxis

    Kinaxis provides concurrent planning platforms that are essential for optimizing the 'first mile' of the manufacturing supply chain. Their solutions help companies predict demand, manage raw material supply, and synchronize production schedules from the very beginning, ensuring resilience and responsiveness.

  • Coupa

    Coupa offers a Business Spend Management (BSM) platform that is directly relevant to the 'first mile' by optimizing procurement, invoicing, and expense management. This enables companies to gain better control and visibility over the sourcing and acquisition of raw materials and components, which are foundational to the manufacturing process.

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