In the contemporary working environment, Industry 4.0 concepts and technologies offer a multitude of possibilities to increase productivity and, therefore, the long-term success of industrial companies and small and medium-sized enterprises, as well. In this context, the systematic development of digital competencies is a major success factor of modern industrial engineering education in higher education institutions. Therefore, this paper reflects the theoretical concept of competencies within modern educational approaches, e.g., ‘Education 4.0’ in Europe, with a special emphasis on digital competencies. Moreover, the authors present the design of the course ‘logistics system engineering and material flow management’ to illustrate the implementation and application of digital technologies in university teaching. The module-based concept should further be used as a reference for the realignment of engineering lectures in higher education institutions to contribute to the professionalization of industrial engineering education.