The Genesis of Industry 4.0 and Why It's Important to Supply Chain Agility
The ANDY Spotlight is brought to you by ANDY Transport, Inc. and focuses on a salient topic related to trade, transportation, and supply chain.
Industry 4.0 refers to the fourth industrial revolution, one that fully integrates digital tools and connectivity into the end-to-end operations of industries such as manufacturing.
Central to Industry 4.0 is connecting the supply chain to manufacturing in any industry. Digital tools now enable supply chain visibility and control on all levels. To engage in Industry 4.0 is to turbocharge the supply chain so that production is fine-tuned with an end-to-end supply chain that affords visibility and control.
Photo: Shutterstock
Visibility and control, in turn, helps drive decisions and reduce supply chain risk from disruption, and other adverse conditions that affect the production of goods in most any industry.
Industry is Ready. Adoption is Slow.
In a research report by Deloitte Global entitled "The Fourth Industrial Revolution is Here—Are You Ready?"
Industry 4.0 is described as connecting physical and digital technologies. Analytics, artificial intelligence, cognitive computing and the internet of things (IoT), all work in tandem with trucking, shipping, warehousing, purchasing, procurement and all logistics.
Deloitte's findings indicated that business leaders acknowledge they may not be ready to harness the changes associated with Industry 4.0. They feel the full adoption of digital tools remains sluggish.
Only one-third are highly confident they steward for their organizations. Just 14 percent are highly confident that their organizations are ready to fully harness the changes associated with Industry 4.0. Many executives are sticking with a focus on traditional domains such as developing products and increasing productivity.
Canadian Importers and Exporters Stand to Benefit from Industry 4.0
The Boston Consulting Group's Canada Center conducted a study in 2019 that found that "an advanced digital infrastructure will also help Canadian businesses generate massive productivity improvements, accelerate Industry 4.0, and allow innovators to develop and sell new solutions globally. These advances will require significant investment in Canada's wireless networks and wireline broadband systems. Policymakers will play a critical role in incentivizing private investment."
Photo: wsp.com
The report estimated that the benefits of the coming digital revolution could add CAN$200 billion or more per year to Canada's GDP by 2040. They further stated that an advanced digital infrastructure will also help Canadian businesses generate massive productivity improvements, accelerate Industry 4.0, and allow innovators to develop and sell new solutions globally. "These advances will require significant investment in Canada's wireless networks and wireline broadband systems," they said. "Policymakers will play a critical role in incentivizing private investment."
New Technologies. New Ways to Work.
New technologies have emerged that couple digital technology with industrial operations. Such technologies are redesigning traditional ways of working.
Shipments may be tracked and located with precision. They may also perform tasks that would otherwise be conducted by a worker, or a whole department of workers. However, Industry 4.0 is by no means something that eliminates jobs. Instead, it redirects workers to new jobs with new functions that can polish operations such as the digital supply chain.
This is perhaps a battle cry for logistics professionals within supply chains to step up and seize opportunity and embrace digital supply chain business models and modifying the business into a digital supply chain.
This is already underway with numerous digital platforms that assist various facets of operations within the supply chain.
Digital tools and solutions are available that incorporates huge arsenals of data: freight structures, tariffs, delivery times, weather conditions, seasonal disturbances, and other variables that all feed into algorithms that can help supply chains be more limber and agile.
With a focus on customer service and customer experience, Andy Transport is giving full and real-time transparency and visibility to all shipments via different platforms, adapting to each customer's requirements. This incorporates all levels of integration from order creation, load tendering and acceptance, to tracking and tracing, delivery confirmation, and invoicing.
“Considered majorly a cost-center for our customers’ overall operations, we strive to remain flexible, transparent and cost-conscious in our offering and positioning. We believe that by committing to 100% visibility to our shipments, we will not only increase our customer service levels but, in the long run, also minimize operational inefficiencies and bring value to the entire supply chain. Moving forward, we strive to continue being a trusted partner in our customers' growth, with care and transparency,” said Andreea Crisan, President & CEO of Andy Transport.
“We aim to meet our customers’ visibility demands and simplify their workflow. Shipment information, like vehicle position, arrivals, departures and supporting documentation seamlessly flow out to the customer in real time. By eliminating check calls through real-time tracking and automated alerts, as well as redundant and non-value-added tasks, our customers can reduce their logisticians’ time wasted on calls or emails and have them focus on value-added tasks”, concluded Kyle Niiya, Andy’s CIO
A New Supply-Chain Generation
These examples and many more like them are the showcase of the future of supply chains – particularly for firms moving goods into and out of Canada. The supply chain, via Industry 4.0, is taking on a whole new persona. It’s no longer the staid environment of only trucks, pallets, docks, distribution centers. It’s just that – only driven by complex digital technology ingrained in the mantra of Industry 4.0.
The outcomes will be greater precision, profitability, and success. Such a premise is why firms must not only be vigilant of Industry 4.0, but be ready to embrace it, adopt it, and expect it – not just within their own enterprise – but in that of the customers and vendors they serve and work with.
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