Supply Chain Management: The road to industry 4.0
The economic and technical environment requires companies to work with flexibility. At the core of strategic activities of companies, Supply Chain Management is facing three major challenges, which are both human and technological: digitization, corporate responsibility and change management.
In future years, Supply Chain Management must meet the challenges related to the challenges of the industry 4.0.
Industrial revolution requires companies to completely reinvent their operating models, as well as products and value chains. For Supply Chain, it is a matter of improving all production processes, optimizing products, services, and the overall business model. As a result, management is positioned as a strategic and central participant in the growth of the company. In fact, the impact of the transformations associated with industry 4.0 plays a crucial role in financial results. Digitization, the integration of new technologies into the production process, and the engagement of teams are key elements to meet these new competitiveness challenges.
The digitization of processes and the integration of data science techniques: At the core of the industry 4.0
Digitization of Processes
Each year, thousands of work hours are lost due to the lack of automation. The digitization of processes responds to this issue by improving the overall performance of the value chain of the company:
- Cost Reduction in the entire operation;
- Reduction of the number of errors, and more fluid information sharing;
- Optimization of resources and reduction of production periods.
The exploitation of data by using data sciences techniques
Industry 4.0 makes new intelligent plant models emerge. The IoT system connects and places the machines into a network where the information collected, processed, and analyzed to become relevant and strategic data. It is shared with all of the key stakeholders in order to make informed decisions. Data and artificial intelligence, therefore, make it possible to gain in operational efficiency.
Putting predictive maintenance into place
Supply Chain Management is facing the challenge of plant transformation, development of preventative maintenance (which has high costs), as well as new strategies called predictive maintenance. The latter, by the analysis of data and statistics, predicts failures in each machine before they occur.
Change Management to engage employees and to structure change
The rapid changes in production and robot automation will transform the work flow within the company. Therefore, Supply Chain Management has a role to play in coordination with Human Resources to:
- Assist teams with the growing pains involved in changes, and to maintain employee involvement
- Reposition knowledge and skills of employees toward a more digitized focus.
The integration of the RSE challenges to meet new environmental challenges
Supply Chain Management must take into account its environmental impact. It is now necessary to combine economic performance and ecological behaviors. New challenges will appear, and adaptation will be required.
According to a McKinsey study, the establishment of predictive maintenance would lead to gains in the amount of 10% to 40% on maintenance costs, and 50% on times of unavailability.