Supply Chain Management – Road to Industry 4.0
With economic and technical environments constantly changing, companies are required to work with flexibility. At the core of the strategic activity of companies, Supply Chain Management faces three major challenges: digitalization, corporate responsibility and change management.
In future years, Supply Chain Management must meet the challenges related to the challenges of the industry 4.0.
This new industrial revolution requires companies to completely reinvent their operating models, their products and their value chains. For the Supply Chain, it is a matter of improving all of their production processes, and of optimizing their products, services, and business model. As a consequence, the Management is positioned as a strategic and central participant in the growth of the company.
In fact, the impact of the transformations associated with industry 4.0 plays a crucial role in financial results.
Digitalization, the integration of new technologies into the production process and the engagement of teams are key elements to meet these new competitiveness challenges.
The Digitalization of Processes and the Integration of Data Science Techniques:
Digitalization of Processes:
Each year, thousands of hours of work are lost in companies due to lack of automation. The digitalization of processes by the Supply Chain responds to this issue by improving the overall performance of the value chain of the company:
- reduction of cost of the entire operation,
- reduction of the number of errors, and more fluid information sharing,
- optimization of resources and reduction of production periods.
The Exploitation of Data by Using Data Science Techniques:
Industry 4.0 makes new intelligent plant models emerge. The IoT system connects and places the machines into a network. The information collected is then processed and analyzed to become relevant and strategic data. It is shared by all of the stakeholders for making an informed decision.
Big data and artificial intelligence, therefore, make it possible to gain in operational efficiency.
Putting predictive maintenance into place:
Supply Chain Management is facing the challenge of the transformation of plants, development from preventive maintenance, which has high costs, to new maintenance called predictive maintenance. The latter, by the analysis of data and statistics, predicts failures in each machine before they occur.
The rapid change of the resources of production and robot automation transform the work procedures in a company. Therefore, Supply Chain Management has a role to play in coordination with the HR office to:
- assist teams with such changes and to maintain involvement
- reposition know-how and skills of employees toward more digital.
The Integration of the RSE challenges
Supply Chain Management must take into account its’ environmental impact. It is now necessary to combine economic performance and ecological behaviors.
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Partner of the Supply Chain Transformation
For more than 30 years, Ayming has worked along with Supply Chain Management Offices to determine and develop their strategy over the entire value chain.