Key benefits of supply chain 4.0
Digital transformation of the supply chain can bring a company a plethora of benefits from better end-to-end visibility and improved decision-making to higher operational effectiveness and minimisation of expenditure.
Here’s more about the top advantages of the digital supply chain:
Espouse end-to-end transparency.
With the digital supply chain, data exchange between an organisation, multiple suppliers and customers becomes more effective. Real-time asset tracking powered by IoT, cloud-based dashboards and other tech solutions make it possible to establish an item's precise location. Organisations can see all updates added to the digital ecosystem, leading to ordering accuracy, traceability and efficiency.
More accurate forecast approach.
Predictive analytics has the potential to reduce forecasting errors by 10% to 20%. Fuelled by AI and machine learning, predictive analytics evaluates historical information about demand, current market trends, weather conditions and other data to provide statistics-based demand forecasts and optimise inventory. Predictions can be carried on a monthly, weekly or even daily basis depending on the product, helping to prevent out-of-stock situations and ensuring on-time delivery. Moreover, performing real-time analysis of a constantly changing market allows organisations to adapt to prevailing trends and stay flexible.
Supply chain 4.0 use cases throughout industries
The disruption in today’s business environment makes digital supply chain adoption a necessity rather than an option. And while many organisations are just considering the benefits, some have already implemented a digital supply chain and proven its capabilities. Here are a few applications of supply chain 4.0:
1. Manufacturing
Digital technologies can help to mitigate the disruptions caused by the pandemic and boost operational efficiency and continuity. For instance, wearables like augmented-reality glasses can help employees receive or render remote assistance, leading to reduced maintenance time. Machine vision algorithms can conduct an automatic quality inspection by analysing images for specific results.
It is unlikely that 3D printing will substitute the traditional manufacturing process. However, it can be applied as a cost-effective solution for producing personalised items. Dr Scholl, a manufacturer of foot care products, uses 3D printing to create custom orthotics.
2. Logistics
Smart logistics powered by connectivity, advanced analytics and automation solutions encompass route optimisation and vehicle scheduling. Moreover, COVID-19 has increased the need to deploy fully autonomous vehicles to deliver goods and minimise physical interactions. The introduction of fully automated vehicles depends on deep learning algorithms, and the technology is not yet available.
Even though most vehicles still have to be controlled by human drivers, they are starting to adopt self-driving features. In 2019, an autonomous truck with a safety driver on board made a trip from California to Pennsylvania in three days. Such a trip would usually take nearly nine days. Unmanned aerial vehicles can also be used to optimise the delivery process and maintain social distancing. For example, Amazon developed a delivery system to distribute packages by drones in 30 minutes or less. Another example of no-contact delivery is self-driving robots. At the beginning of 2021, Starship Technologies’ delivery robots have already completed around a million autonomous deliveries.
Related Insights
