Supply chain 4.0: a smarter supply chain thanks to artificial intelligence

Supply chain 4.0 means the integration of new technologies into the supply chain. Indeed, technologies such as blockchain, digitalization, artificial intelligence, IoT or machine learning, can deeply transform supply chain companies. They can improve their productivity and efficiency with controlled costs. In this context, what exactly are the challenges of digital transformation in the supply chain?

Artificial intelligence and supply chain 4.0: what are the challenges?

The challenges of supply chain 4.0 are to enable manufacturers to obtain better control and greater visibility of their activity. The new technologies induce the evolution of the processes and confer more agility to the companies.

In concrete terms, inventory redistribution is optimized, warehouse operators gain more autonomy thanks to IoT and robots, service delivery for customers is better, etc.

Manufacturers can also have a more accurate view of demand. This allows them to improve sales services, optimize pricing, etc. Moreover, by relying on algorithms and analyzing all available data, strategies are more oriented.

Supply chain 4.0 artificial intelligence

Artificial intelligence for predictive maintenance

With artificial intelligence, it is possible to use existing data to forecast and predict future activities. Actors can therefore make decisions that are more appropriate to the situation.

Indeed, the implementation of predictive maintenance allows to gain in productivity, while guaranteeing an optimal quality. Predictive maintenance is based on real-time visual data from sensors. This makes it possible to identify and remove defective products directly from the production line or to identify damaged containers and separate them from the others.

AI for better forecasting and supply chain optimization

The challenges of new technologies must allow companies to be more competitive. In addition to improving the supply chain, they create benefits for supply chain 4.0 management.

Indeed, the exploitation of raw materials and human resources is optimized. Digital tools support on-demand work, which reduces storage costs, warehouse rent costs, etc.

Innovation is evident in the implementation of more resilient systems and digital tools that ensure better risk management:

  • secure connectivity,
  • dynamic mapping of the supplier and customer network,
  • collaborative tools,
  • etc.

Supply Chain companies are moving towards a long-term technological evolution to make them both more connected and more reactive.

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