Unlocking Industry 4.0 to Streamline Your Supply Chain..

How beneficial will the fourth industrial revolution be for manufacturers? Here are few ways Industry 4.0 may help streamline your supply chain.

The digital revolution is upon us, and with it comes the arrival of Industry 4.0—the new wave of digital transformation hitting the modern supply chain. From the very latest in technology to whole new ways of thinking, it’s certainly set to shake up the dynamic of manufacturing. But how beneficial will it be for manufacturers in the long-run?

What Is Industry 4.0?

Being something of a buzzword for the last couple of years, most manufacturers are now fairly familiar with the idea of Industry 4.0. If you’re still not fully clued up on the term and what it entails, here’s a quick overview. Also referred to as the fourth industrial revolution, Industry 4.0 is the further digitization of the manufacturing sector. While Industry 3.0 introduced the likes of computers into the process, 4.0 focuses on enhancements via disruptive new technologies and software solutions that force businesses to rethink the way they operate. From machine learning, artificial intelligence, and automation to big-data analytics and the Internet of Things, this new wave of tech promises to provide a truly connected manufacturing network.

Role of Industry 4.0 in Supply chain management:

1. TRANSPARENT PRODUCTIVITY: There is a various number of suppliers feeding into the supply chain ecosystem, which automatically makes it fundamental to transparency. A lack of clarity of information could shallow the links and relationships and affect the efficiency of the process. Complete transparency enables businesses to not only respond to problems in real time but also to anticipate them and react to them ahead of time. The market today survives on the proactive response so that businesses can always stay ahead of the competition, forecast any potential challenges, safeguard manufacturing process as per the condition prevails. Digitization hence enables businesses to respond to customer’s demands more effectively and quickly as and when needed by the demand generators.

2. TIME PLAYER: The major role of digital supply chain is to open multiple possible networks and provide visibility for everyone who is involved. This helps businesses to respond in real time which ultimately improves the experience for both i.e. for the manufacturers and for the customers as well. Supply chain processes are extremely intricate and multi-faceted thus making digitization tough with every step. While different manufacturing companies are already implementing the digital supply chain at varying speeds, levels, and phases; manufacturers who plan to compete on a global scale and secure the longevity of their business shall start implementing the digital changes now.

3. AGILE SYSTEM: With the installation of digitized and smartly integrated supply chain network in the businesses, various companies are now able to respond to customer demands more effectively, efficiently and instantly on a real-time basis that has ultimately impacted and improved productivity. To make sure they are in touch with consumers across the globe, supply chain relies on the effective and streamlined implementation of tracking the data. An agile system in the digitalized supply chain and streamlined ecosystem is made possible with reduced downtime of machines, improving efficiency along with reducing losses overall.

For example, A few years ago, Essentra Components had 300 machines producing 1.5 million mouldings a day at the Kidlington site. Today, there are 120 machines producing 3.7 million components a day. launched the S099 demand planning platform in EMEA and will shortly be launching this system in the Americas. This also supports aggregated global demand plan for all vendors, providing transparency across the entire business, improved response to the customer and ultimately a more efficient and dynamic manufacturing footprint.

4. TECHNOLOGICAL ADVANCEMENT: Industry 4.0 allows a space for technological advances in the traditional supply chain management process to cope with the disruptive changes in the market. The use of advanced analytics to enter the system to use data to its fullest potential proves no industry can survive this era if it has not moved towards the digital change. Advance technologies like IOT, Artificial Intelligence, Robotics support with the flexibility, transparency, and visibility necessary to respond to changes in planned production. Industries have started to look into the benefits provided by technologically advanced enterprises like IoT development companies, mobile app development companies etc. This ensures to maintain delivery timetables and continued movement of component parts throughout the value chain to reach to the end consumers. Industry 4.0 provides automated technologies to various process that speeds up and eases the path of segments like job scheduling and management, inventory management, warehouse, and transportation strategy across the entire network.

With digitization being introduced in Supply Chain Management, the process has become much more:

1.Faster– Industry 4.0 in supply chain process has evolved various new approaches to product distribution. This would reduce the delivery time, manage inventories without any loss in the process. Digitization has enabled the use of advanced forecasting approaches, such as predictive analytics of internal data (e.g., demand) and external data e.g., market trends etc., to make sure the consumers are supported with their demands and fulfilled before time.

Example: In Amazon, products are shipped before the customer places an order. The customer order is later matched with a shipment that is already in the logistics network, and the shipment is rerouted to the exact customer destination.

2. Supple– Digitalized Supply Chain process manages real-time planning that allows companies to respond flexibly and durable to changes in demand or supply, minimizing planning cycles accordingly. Due to such sudden changes in demand, planning becomes a continuous process that can react dynamically to changing requirements or constraints.

3. Drilled down– The time demands customization as per individual’s need. With customers looking for more and more individualization in the products they buy, Industry 4.0 in supply chain allows companies to manage demand at a much coarser level, through techniques such as micro-segmentation, niche market description, mass customization, and more appropriate scheduling process.

4. Efficient– Gone are the days when it was only a physical effort to bring down products to end consumers. With digitization, there is automation of both physical tasks and technology involvement that boosts supply-chain efficiency. Technologies like Robotics, AI, Machine advances are efficient in material handling, automating the process of receiving/unloading, to picking, packing, and even shipping of end products. Even transport has been upgraded with an autonomous transportation system for timely and non-failure delivery.

How Can Industry 4.0 Benefit the Supply Chain?

The adoption of Industry 4.0 looks set to benefit many aspects of the manufacturing sector, and none more so than the supply chain. Here are just a few examples of the ways in which the supply chain could be transformed:

1. BETTER WAREHOUSE MANAGEMENT The warehouses of this new era have the potential to be fully autonomous: a smart, interconnected environment with vastly improved efficiency. Warehouse inventory tracking software will constantly update in real time, with embedded sensors to indicate exactly when and where stock has been deposited and picked up. When delivery trucks alert the warehouse of their position and estimated arrival time, intelligent management systems will even be able to choose a docking spot for the item, and arrange for autonomous equipment to move it to a chosen location. This is the reality of a smart warehouse—streamlined and much less labor intensive than today’s warehouses.

Smart warehouse technology is already being tested by some businesses. DHL tested augmented reality in one of its Netherlands warehouses to great success. It utilized “vision picking,” in which staff wore smart glasses and were guided through the warehouse via graphics. This helped to reduce errors and sped up the picking process by 25%.

2. REDUCTION IN FORECASTING ERRORS Predictive analytics will be one of the major capabilities of Industry 4.0. More than just reporting on the current state of the supply chain, advanced algorithms will be able to accurately predict demand volume for certain items, as well as highlight potential risks and identify trends further down the chain. This will help businesses plan accordingly, optimize their inventories, and reduce the likelihood of forecasting errors. It’s all about encouraging more informed and proactive decision-making by managers, which will, in turn, result in reduced costs.

3. GREATER VISIBILITY One of the most common issues the supply chain faces today is a lack of shared information. In the world of production, disruptions are likely; but with so many different parties involved in the supply chain, it’s easy to lose sight of where things go wrong and fail to receive information in a timely manner. Going digital helps break down communication barriers and offer greater transparency, removing the outdated linear nature of the chain and allowing everyone to see the whole network.It also makes for easier traceability, with real-time tracking and status updates similar to what we see in the B2C market now. This transparency goes a long way toward building stronger relationships with customers and suppliers alike.

Transforming the Supply Chain of the Future

Although the revolution is still very much in its infancy, the potential that comes with this new era of supply chain management is tremendous. There are three key main enablers of transformation into digital supply chain: a clear strategy, new competencies, and an advanced environment. Digital supply chain starts with an understanding of the current operation’s digital waste, the lack of knowledge often leads to a failed road and thus it’s important to encapsulate the technological advances. Capabilities regarding digitization then need to be created with planning.  Fast and flexible, the digital supply chain is one that’s set to be much more customer focused and to boost revenue via whole new avenues. As more businesses begin to adopt Industry 4.0 models and technologies, they’ll be able to establish supply chains that are more sustainable and efficient than ever before—and those that don’t adapt with the times will likely be left behind.