Supply chain 4.0: what role for supply chain management?

In the aim of supply chain 4.0, management plays a key role in the implementation of digitalization. This includes the collection of data through blockchain in order to evaluate and pool needs and resources, in order to minimize costs. Implementing automation improves the flow of products and information between departments within the company and to the end customer.

Supply chain management : definition

SCM, Supply Chain Management, controls the entire logistics chain, from the purchase of raw materials to delivery to the recipient. The supply chain management commits the company to the customer satisfaction policy.

Responsible for the quality of the product, he is also often the last link in the chain, especially if the transport part is his responsibility. The SCM initiates productivity gains through cost optimization, by adapting resources to material and human needs.

IoT helps him with machine occupancy rates or workforce availability. Thanks to these elements, it can guide operators towards greater efficiency and responsiveness.

Supply chain 4.0 management iot

What role does supply chain management play in the Industry 4.0 era?

The SCM is involved in making decisions about transforming systems with new technologies. He leads the policy of improving competitiveness, in particular through increased knowledge of the players in his sector of activity, such as supplier sourcing.

Aware of the stakes, the SCM participates in the evolution of the logistic function by improving the global fluidity, the flexibility of the teams and the means in front of an increasingly demanding customer demand. The personalization of products and services is today a major development axis for the company.

Thanks to the IoT, we can now move away from the old paradigm of storing large quantities in order to keep small buffer stocks that can compensate for the vagaries of production. These old inventories were costly and imposed a brake on production flexibility. The blockchain puts an end to these old practices thanks to a relevant centralization of information on the flows.

Supply chain management 4.0: the contribution of new technologies

The SCM benefits from new technologies such as

  • IoT,
  • big data,
  • the blockchain,
  • robotics.

They all serve the company’s competitiveness and differ from the old organizations in their interconnectivity and the completeness of the information flows they generate.

The use of artificial intelligence in supply chain 4.0 proves that SCM has fully embraced the importance of technology evolution in the supply chain.

Innovation lies in the digitalization of information systems, offering real-time knowledge and immediate adaptability of resources. An automated system replaces human handling and thus reduces the risk of error.

The benefits are many:

  • time saving,
  • efficiency of the teams,
  • cost control.

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