Optimising Supply Chain Management in Industry 4.0
Optimising Supply Chain Management in Industry 4.0
Feature Article by Byron Hall – Product Manager – EDI/MFT, Boomi | Member Board Of Directors, X12
Supply Chain management has undergone transformation since industry 4.0 began in 2011. Not all businesses were on board with implementation of smart technologies in supply chain processes, as some businesses found it challenging to embrace Industry 4.0 due to internal and external factors. Over the last couple of years however, this has accelerated at an unprecedented speed when disruptions hit supply chain worldwide. A host of challenges have cost businesses more than expected. Significant financial loss, low or weak productivity, dwindling customer satisfaction and much more.
Partly as a result of these challenges, Supply Chains are taking huge strides towards becoming digitised, automated, and agile in its operations. Business optimisation through digitisation for organisations and trading partners will remain a key focus as the world continuously transforms through smart automation solutions. In managing efficiency of supply chain processes, integration is the key driver. Coupled with real-time visibility, businesses will be able to navigate through supply challenges and devise the right response management.
When you have the right tool and software that are Industry 4.0-ready, issues in the supply chain can be ironed out and addressed beforehand.. As an example, Boomi provides platform services that seamlessly connect applications, data and people across businesses and trading partner ecosystems. When surprises in your supply chain are reduced, smoother collaboration with trading partners to keep your supply ecosystem well and moving ensues.
Digitisation in supply chain process: Is yours up to speed with current industry demands?
Significant technologies like cloud computing, artificial intelligence, intellig ent ERP, modern EDI, and more play crucial roles in digitising supply chains. Disruption due to world events is one thing we cannot predict over the long term, but disruption in terms of inefficient or under-optimised digitisation is something you can always redesign as needed to future-proof your supply chain ecosystem.
Today’s EDI has seen tremendous change compared to 10 or 15 years ago. It’s not surprising that businesses which failed to make it out of the pandemic were relying on traditional EDI software platforms. Delays and disruptions should be mitigated., Migrating your legacy EDI to modern EDI software and applications may be the most efficient and even cost-effective option.
As we progress further in Industry 4.0, more and more small and medium-sized businesses are looking to implement modern EDI in their business systems. Some see it as a means to comply with major retailers’ supply chain process requirements or other trading partners.. Solustions such as the ones offered by Boomi can help streamline ybusiness ecosystem management and effectively integrate with vendors, suppliers, distributors, partners and marketplaces to simplify processes. By doing this, companies will be able to spot opportunities and gain more time to strategise for better customer experience.
Today’s digital supply chain network: Rapid transformation towards efficiency & optimisation
The era of Industry 4.0 requires a greater demand for horizontal, vertical, and end-to-end digital integration. Organisations that have adopted or are in the process of adopting Industry 4.0 need to sustain efficient and effective supply chain processes across the board. They are the ones changing their game in supply chain dynamics to constantly create new business opportunities and to collaborate efficiently with business and trading partners.
Effective, digital supply chain networks utilise different technologies in developing efficient, transparent, adaptive and resilient systems in various stages of a supply chain.
As we dive deeper in supply chain in Industry 4.0, automated systems and IoT to allow for better customisation, agility, and speed, Industry 4.0-enabled capabilities such as highly organised interconnections, real-time monitoring and control of materials, equipment and supply chain parameters help to improve the overall performance of the value chain and reduce risks that may impact business growth.
What Industry 4.0 Digital Supply Chain Brings to The Table?
Companies are choosing to invest significantly into digital solutions to combat supply chain uncertainties. Digital automation can streamline processes, eliminate manual work, and reduce human error. More importantly, automated solutions allow businesses to respond to changes quickly, and get valuable information quicker and in real-time.
Some of the key factors that define supply chain value for all parties in the ecosystem are:
1. Agility pays, every time.
When you react to changes in demand, supply, and prices, you reduce planning cycles and downtime. Industry 4.0 implementation in supply chains enables real-time planning and control, allowing companies to be flexible and agile in responding to rapidly changing conditions.
2. Accuracy for smarter, swifter decision-making.
Industry 4.0 technologies provide real-time, consistent, and accurate data to make more informed decisions. Deep insight into inventory and supply chain visibility are top priority in times of supply crisis. When you implement applications and software that further anticipates possible bottlenecks, you’ll be able to tackle more challenges as you are informed through predictive algorithms and other forms of data. This helps supply chain managers make better decisions on optimal ways to get products to the end market or customer.
3. Integration strengthens your supply process and growth.
When you apply seamless integration to your business system, you work actively together across every point of your supply chain, and work coherently in an ecosystem of trading partners that propel your business.. Boomi’s integration platform service has enabled companies to achieve 4 times growth in their number of orders processed.
With digital solutions and technologies evolving at such high speed, advancement in supply chain processes will continue with its metamorphism to give businesses around the world a better handle on their supply chain control tower. Business ecosystems will evolve continuously to integrate with new challenges – whether it’s moving in parallel with economic trends or addressing the growing need of adopting emerging technologies in business processes.
Implementing Industry 4.0 principles in a world of rapid technological progression requires businesses to look beyond the current boundaries of supply chain. The time to start embracing Industry 4.0 is now.