The advent of the fourth industrial revolution and connected technologies has transformed operations in manufacturing-based industries including supply chain and logistics. From connected shipments to robotic process automation (RPA) and advanced analytics features, Industry 4.0 brought a multifold increase in supply chain productivity. As a result, it has become easier for enterprises to efficiently run their SCM operations by enabling automation at every level. At the same time, it significantly improves operational efficiency and aids in enhancing production capacity to drive steady business growth.
The use of Industry 4.0 technologies like IoT, cloud, business intelligence, and big data analytics in supply chain management laid the foundation of Supply Chain 4.0. As a result, the focus of modern-day supply chain processes have shifted to advanced analytical planning and integrated S&OP.
Supply chain 4.0 is the improved version of the supply chain that incorporates a variety of Industry 4.0 technologies like IoT, AI, cloud, and big data. It combines advanced AI algorithms, business intelligence tools, data sciences and other next-gen technologies to significantly improve supply chain management. Besides, the internet of things renders connectivity across different SCM and logistics activities, enabling enterprises to track shipments and automate workflows. At the same time, it enables enterprises to overcome many challenges associated with traditional SCM methodologies and builds resilience. In the following section, we shall explore the main benefits of adopting Industry 4.0 technologies to improve supply chain management.
Implementing industry 4.0 technologies in supply chain management can be beneficial for enterprises in many ways. Read further to explore the main benefits of supply chain 4.0 for companies belonging to manufacturing, retail, and eCommerce industries.
Industry 4.0 technologies can significantly improve supply chain productivity by virtue of process management, demand and supply planning, S&OP, and other critical SCM activities. Besides, you can centrally manage all these activities through a common holistic digital ecosystem. It also streamlines warehouse operations and brings agility in inventory management processes by using data analytics techniques and IoT sensors.
Supply chain 4.0 renders a great deal of transparency within the digital SCM ecosystem. At the same time, it facilitates seamless data exchange between suppliers, vendors, and warehouse managers to avoid all possible discrepancies. The use of IoT sensors paves the way for real-time asset tracking that further streamlines warehouse management processes. Also, there are cloud-based dashboards that enable enterprises to centrally manage a host of warehouse and supply chain activities.
The use of AI-driven ERP systems and business intelligence tools could be increasingly beneficial for enterprises as they provide accurate sales forecasts and facilitates intelligent decision-making. Besides, enterprises can use machine learning algorithms and predictive analytics techniques to analyze market trends and provide statistical insights for demand forecasting.
In view of the fourth industrial revolution, connected vehicles have become a new normal for logistics companies to successfully run their operations. Under supply chain 4.0, we now have smart logistics solutions that are powered by next-gen technologies like IoT, data analytics, and machine learning. Nevertheless, the COVID-19 pandemic paved the way for fully autonomous vehicles to deliver shipments with minimal physical contact. These vehicles are powered by advanced deep learning algorithms and are effective at efficiently handling large volumes of shipments with sheer efficacy.
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Supply chain 4.0 is by far the most advanced form of the supply chain that enables enterprises to overcome many challenges prevalent in the industry. A large number of manufacturing companies are already leveraging the unique features brought in by supply chain 4.0. According to Gartner, about 80 percent of organizations are likely to invest in connected technologies in the coming years. That said, it seems like an opportune time to invest in this unique technological ecosystem and build resilience for the future. Nevertheless, it is equally important to collaborate with a trusted technology partner to extract the true benefits of these revolutionary technologies.
We are a prominent ERP development company that provides complete enterprise solutions to address the diverse business needs of our customers. Our development team specializes in implementing next-gen technologies to improve supply chain operations with increased security, transparency, scalability, and interoperability. We use open-source technologies like Odoo, ERPNext, and Opentaps to build scalable SCM software solutions with a focus on implementing Industry 4.0 technologies. Our end-to-end supply chain software development services enable enterprises to enhance their productivity and achieve higher operational efficiency. To learn more about our supply chain application development services, contact us at [email protected].