Let’s says you’re playing chess. Traditionally, a chess player looks at the whole board and comes up with an overarching strategy, which she can then adjust as needed when new conditions (i.e. her opponent's strategies and maneuvers) emerge. For this game, however, you decide to do something different: you have a series of different plans, one for the pawns, one for the bishops, one for the queen, etc. with no obvious connections or interplay between them. As situations arise in which multi-step, cross-functional movements would be helpful, you stay in your lane and stick to the separate plans for each function. At the end of the game, your rooks have performed admirably, and everything went according to plan for your pawns, but you still found yourself in checkmate.
Transparency is at the heart of both Industry 4.0 and the sales & operations planning process. Without visibility into every aspect of a supply chain, planners have no way to know for sure how something they do today will impact another department or team in the months to come. With visibility into those teams’ processes to see where the overlap is, they can see clearly how each move they make will impact the rest of the company and can better ensure that the entire value chain is protected from non-compliance. This may look different for production planners and operations managers, as each has their own priorities and needs. different needs. It can also look different at each stage of the plan from the same department, but the bottom line remains the same—visibility into the planning process is key to successful implementation.
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.
In his seminal work of economic theory, “The Wealth of Nations,” Adam Smith famously uses a pin factory as his example to illustrate a number of basic concepts in what was then modern capitalism. Today, the production of something as simple as a pin can essentially be a global affair. In all likelihood, your production facility needs to receive shipments of raw material from elsewhere in the world via a complex set of routes and distribution points. The factory itself may be part of a larger, international organization with diffuse planning processes taking place in parallel all across the world. And the finished product, once it’s been produced, might be sent anywhere in the world—after all, people all of all nationalities and backgrounds sometimes need pins.
Sales and operations execution, or S&OE, is a little bit like flying an airplane. In the modern era, you already have a host of processes that have been digitized and automated, including many of the actions that pilots themselves used to be solely responsible for. Your point of departure and destination, as well as the route that you’ll take from one to the other, is already fixed—all of which means that as a pilot your job is mostly to monitor incoming information and make slight adjustments as needed, even if those adjustments are just a fairly rote response to alerts being sent to you by your instruments.
Whether you’re a freight forwarder seeking out a new ERP system that helps to manage the flow of goods from origin to destination or a manufacturer looking to add visibility and bolster efficiency within your own transportation management processes, selecting the right logistics or transportation management software can be a difficult task. In some ways, the process of selecting the right technology is a lot like finding a 3PL (third party logistics provider) with whom to partner. In both instances, you need to consider price, customer service, existing relationships, and scalability—but you also need to take stock of your organization’s values and provide a clear roadmap for the future of you're your operations. Even if you choose the most reputable partner in the business, the partnership likely won’t be a success if their goals aren’t well-aligned with your own.
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.
For most of you reading this right now, it’s early spring. Maybe you’re huddled up inside avoiding cold rains, or maybe it’s just as blustery and wintry outside as it was a few weeks ago. Either way, we’re sure you won’t object if we ask you to pretend it’s summer. More specifically, it’s summer, and you have plans to meet your friends at the beach for a big, old-fashioned picnic. You’re so excited that you spend hours the night before cooking all sorts of classic picnic dishes: potato salad, spinach dip, caprese salad, etc. Unfortunately, you realize at the eleventh hour that you’ve made so much food that you can’t store it all in your fridge.
Topics: Industry 4.0
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.
Logistics 4.0: buzzword, or critical concept for the future of supply chain management? We might be a little bit biased over at flexis, but we’re pretty sure it’s the latter. As the global supply chain becomes every more complex and ever more digital, businesses are going to need a new framework for making decisions, developing shipping plans, and creating cohesion between their various IT choices. We think that Logistics 4.0 is going to provide that new framework, and we think that after you’ve had a chance to peruse some of these interesting facts, you’ll heartily agree.