In 2015, the global cost of overstocking goods was $470 billion, and the cost of under-stocking was more than $600 billion. What implications does this have for modern manufacturers?
Modern product life cycles involve a lot of prototyping, and it has historically been difficult to know in advance what the result of any given change or adjustment might be. Luckily, Industry 4.0 is rapidly changing the journeys that products take from conception to production.
How do you answer thorny questions about demand, capacity, and inventory management in a way that yields smooth production scheduling and minimum of slowdowns? One potential answer is to implement order slotting.
Logistics 4.0, digital logistics, modern transport logistics: whatever you want to call it, the new paradigm emerging in the world of transporting goods from production plants to consumers is gaining steam rapidly.
In the past, logistics providers have been stuck making decisions about routing, hub placement, and network administration based on incomplete, past-oriented data. Strategic network planning turns that data into concrete predictions about the effects of any possible changes or adjustments.
Optimize for time, or do you opt for the shortest route in order to save on fuel costs? Should you utilize transfer points at which you consolidate or break up shipments, or go for a continuous, unbroken transport? How do you optimize tour planning from a supply chain planning perspective?
In the spirit of data-driven decision-making in the automotive supply chain, here are a few statistics that might be important for supply chain managers to know going forward.
As we enter the Industry 4.0 era and supply chain planning technology becomes more and more sophisticated, planners are increasingly being given the tools to tackle the traditional hurdles of route and tour planning in a smarter, more agile way.
Logistics 4.0 is to old-school transport management as navigating without a GPS is to driving with a smartphone: it boosts connectivity and eases pain points at every turn.
