We now live in unprecedented times of global business and trade, not to mention continued technological innovation and rapidly changing customer expectations. Today's best supply chain strategy requires a demand-
driven operating model that successfully brings together people, processes, and technology in an integrated capability to deliver goods and services with extraordinary speed and accuracy.
While SCM has always been a cornerstone of companies, today's supply chain is more important than ever as a marker of business success. Companies that can effectively manage their supply chains to adapt to today's volatile and ever-changing technology-
based business environment are the companies that will survive and thrive.
Industry 4.0 and SCM
The application of radical new technologies to manufacturing is currently being called , or Industry 4.0 "the fourth industrial revolution". In this new era of industrialization, technologies such as AI, machine learning, Internet of Things, automation, and sensors are changing the way companies produce, maintain, and distribute new products and services. Industry 4.0 can be said to be built on the supply chain.
In Industry 4.0, the way companies apply technology to the supply chain is fundamentally different from how they applied it in the past. For example, in the maintenance function, companies usually wait until a machine breaks down to repair it. Smart technology has changed that. We can now predict failures before they happen, then take steps to prevent them so supply chains can continue running without disruption. Today's SCM is about using technology to make supply chainsand companiessmarter.
Industry 4.0 SCM also provides significant advantages over traditional SCM as it enables aligned planning and execution while providing major cost savings. For example, companies operating on a "plan-to-produce" model---where product production is tied as closely as possible to customer demand---must make accurate forecasts. This involves regulating a number of inputs to ensure that what is produced will meet market demand without exceeding it, thereby avoiding costly overstocks. Smart SCM solutions can help you meet
customer demands and financial goals at the same time.
Intelligent SCM also has other advantages. For example, it can give supply chain employees the freedom to contribute to the business in ways that add value. Better SCM systems that automate everyday tasks can equip supply chain professionals with the tools
they need to successfully deliver products and services designed for supply chains.
