For a recent report, McKinsey tracked the progress of a group of Industry 4.0 “Lighthouses,” i.e. operations that had successfully undergone or were undergoing digital transformations in the spirit of the Fourth Industrial Revolution. So far, these manufacturers have been fairly successful at creating a smarter end-to-end value chain, and their agility, productivity, and waste reduction have by and large shown real improvements as a result.
Supply chain forecasting lies at the heart of the balancing act between current supply and future demand. At a fundamental level, it’s the process of combining historical purchasing data with customer buying trends to develop a prediction of what sales flows will look like at a given time in the future. The ability to generate an accurate demand forecast is challenging enough in and of itself, but when you mix in the inherent risks and outside challenges of your end-to-end supply chain—you start to see how easy it can be to get things wrong. Think of it like this, if you’re having a party and invite 12 people, what do you do when each of them unexpectedly brings a friend? Did you get enough cups? How about food? Do you have a contingency plan for the quick delivery of extra supplies? That’s a simplified example, we know, but the fundamentals remain the same—you must have all the data at hand to overcome whatever challenges present themselves and create the most accurate forecast possible.
In the past few years, the industrial world has seen an increase in the use of so-called digital twins, i.e. digital representations of physical factories. Maybe you’ve heard about technology that makes use of this concept—maybe you’ve even wondered why and how this concept could theoretically be applied to your own operations. If you have, then you’ve come to the right blog. Today, we’ll give a quick rundown of the top 5 uses for factory simulations, and how those uses can drive value and reduce disruptions for modern manufacturers.
Are you ready for a digital supply chain? Industry 4.0 is revolutionizing the manufacturing end, while its offshoot Logistics 4.0 is doing the same for the shipping end of the chain. But what about all the connecting pieces in the middle? Is your company ready to adopt the technologies and techniques that will fully digitize your end-to-end supply chain, or are you still using pen and paper to track your warehouse inventory? With the continued adoption of these technologies, the future of the supply chain is going digital, and there are a number of reasons digital will rule. Already, we’re seeing major inroads on the part of IoT sensors, RFID tags, smart pallets and GPS tracking leading the charge. Is your company ready to adopt and adapt? Or will you find yourself left behind as your competitors step into the digital gap?
Even manufacturers themselves may sometimes forget how tremendous the global manufacturing sector really is. Manufacturing in the U.S. on its own, for instance, would be in the world’s top 10 economies. Because this sector encompasses so many different businesses with so many different missions and products, it’s easy to prove or disprove almost any prediction. Sure, someone among the incredibly diverse array of global electronics producers is probably using voice activated AI in their plants—just as someone else is probably bucking every emerging trend by continuing to eschew digitization and connectivity. Still, as general trends emerge, it can be helpful to identify and understand them. To that end, here are some predictions for the world of global manufacturing in 2020.
Industry 4.0 is making waves in the manufacturing and supply chain sectors. But what about logistics? How are these same technological advances helping move those products faster and more efficiently? The goal remains unchanged: to use connected workflows and technologies to give people the tools and freedom they need to adapt and pivot with the changing environment and to seek creative solutions to increasingly complex problems. Logistics 4.0 is here, and one of the primary drivers of this revolution is the Internet of Things (IoT). IoT refers to devices of all sorts, be they tablet computers, sensors monitoring machinery or vehicles, or even wearables that track biometrics to ensure the health and well-being of the workforce, that are all connected to the network.
Digital supply chains can help manufacturing businesses reduce costs and disruptions in a variety of ways. They make it possible to predict potential breakdowns and bottlenecks far enough in advance that you can take steps to address them, just as they help you to boost operational efficiency through smarter sourcing, inventory management, and capacity management. More than that, going digital makes it easier for your business to integrate with other highly-digitized operations, meaning that especially sophisticated supply chain partners (whether they’re suppliers or logistics providers) will be more excited to partner with your business.
How many of you reading this remember the skepticism that came with the release of Apple’s first iPad? It may seem strange now, given how ubiquitous these pieces of technology have proven to be, but there were plenty of detractors of this early tablet: was it just a large iPhone that couldn’t make phone calls? Or a tiny MacBook without a keyboard? What was the point, and who would gain any real value from such a thing? Nowadays, those objections seem misguided. Why? Because we’ve seen the ways in which iPads and similar tablets have transformed numerous processes across various industries, starting with Apple’s own stores: instead of cash registers at the ends of individual checkout lines, Apple sales and support staff use iPads not just to ring up completed transactions, but to check in customers for their appointments and gather additional data about their needs or issues.
Supply chain management can often be a stressful task, sure, but so can planning a successful potluck. You often don’t know in advance who’s going to bring what dish to your event, which means that any meal-planning you do on your end is essentially guesswork. Though it’s not likely, you could end up with a party where everyone independently decided to bring potato salad, and no one brought any main dishes or desserts. Luckily, in the 21st century, there’s an app for that: party planners can let attendees specify what they plan to bring in advance, and that information can be displayed in real-time for other attendees who are still deciding. In this way, party planners reduce the likelihood of too many repeat items, while putting themselves in a position to fill in any gaps that may arise.
By now, most of you know that Industry 4.0 revolves largely around the creation of cyber-physical systems. This can take many forms, from simulation-ready digital twins of your factory floor operations to advanced alert systems integrated with IIoT (industrial internet of things) devices. What some of you may still be wondering about is how, exactly, these things are going to add value. What is it about cyber-physical systems that will make life easier, or more efficient, or more profitable for modern manufacturers? When all is said and done, what will industrial operations in the Industry 4.0 era look like? Hopefully, these five statistics can shed some light on all of these questions.