Internet of Things (IoT)Web & Mobile

Supply Chain 4.0

The digital revolution known as Industry 4.0 is happening in large corporations and organizations. Is the supply chain keeping up with it? Learn how Supply Chain 4.0 can make your organization faster, more flexible, granular, accurate, and efficient.

Ostap Zabolotnyy
Ostap ZabolotnyyMarketing Manager
Supply Chain 4.0

It is part of Industry 4.0, which will eventually transform virtually every aspect of the business through vertical integration of research and development, marketing and sales, manufacturing, and new business models based on these advances. In effect, we are, progressing towards a fully integrated digital ecosystem. This ecosystem will be built on the full implementation of numerous digital technologies, including the cloud, the Internet of things, big data, augmented reality, 3D printing, and others. 

They are enabling new business models, product and service digitization, and the integration of every link in a company's value chain. 

Supply Chain 4.0 - using the Internet of Things, advanced robotics, and advanced big data analytics in supply chain management: embeds sensors in everything, builds networks everywhere, automates everything, and analyses everything to improve customer satisfaction and performance significantly. 

Continue reading to discover why you should consider making your company's supply chain 4.0 a reality. 

What is Supply Chain 4.0?

A supply chain is an ecosystem of systems, processes, and entities collaborating to turn an idea into a finished product and ready-to-sell offering. In an end-to-end blockchain-enabled supply chain, data is generated and stored from sourcing to delivery while ensuring quality, speed, security, profitability, and transparency. 

Supply chain 4.0 is a more advanced version of the supply chain that incorporates Industry 4.0 technologies such as IoT, AI, cloud, and big data. To significantly improve supply chain management (SCM), it combines advanced AI algorithms, business intelligence tools, data sciences, and other next-generation technologies. 

Furthermore, the internet of things provides connectivity across various SCM and logistics activities, allowing businesses to track shipments and automate workflows. Simultaneously, it enables businesses to overcome many challenges associated with traditional SCM methodologies and builds resilience. 

The Need for Supply Chain 4.0 

Industry 4.0 causes disruption and forces businesses to reconsider how they design their supply chains. Several technologies have emerged that are disrupting traditional modes of operation. Furthermore, megatrends and customer expectations alter the game. 

Aside from the need to adapt, supply chains can advance to the next level of operational effectiveness, capitalize on emerging digital supply chain business models, and transform the company into a digital supply chain. 

  • Several megatrends significantly impact supply chain management: Global ruralization is continuing, with wealth shifting into previously unserved regions. The logistical difficulties are exacerbated by pressure to reduce carbon emissions and traffic laws for socioeconomic reasons. However, changing demographics lead to decreased labor availability as well as increased ergonomic requirements as the workforce increases. 
  • Customer expectations are rising: The recent online trend has resulted in higher service expectations and much greater order granularity. There is also a clear trend toward greater individualization and customization, which drives the SKU (Stock Keeping Unit) portfolio's rapid growth and constant changes. The online-enabled transparency and easy access to many options for where to shop and what to buy drives supply chain competition. 

Supply chains must become much faster, more granular, and more precise to capitalize on these trends and meet changing demands.

Traditional Supply Chain vs. Supply Chain 4.0 

The traditional supply chain can be considered a linear "plan and control" model, with multiple and disconnected planning cycles, each with only a partial view of the supply chain, resulting in inefficient feedback loops, communication, and collaboration that can result in excessive firefighting. 

In the era of Industry 4.0, Supply Chain 4.0 is a modernized supply chain model that will help businesses succeed. 

Let's break down the differences.