Understand how Supply Chain 4.0 is revolutionizing logistics

3 minutes to read

The digital transformations of recent years have significantly changed all sectors of the industry. It is from this that the concept of Industry 4.0 arises, derived from the Fourth Industrial Revolution.

Consequently, a series of other concepts are also related to this new moment in the industrial sector. One of them, for example, is the Supply Chain, a very expensive concept for the logistics sector.

We invite you to understand how it is revolutionizing this area and what its main challenges are. Have a good reading!

What is Supply Chain 4.0?

Supply Chain 4.0 starts with the Fourth Industrial Revolution, which brought about significant changes, with the adoption of important technologies in industries and companies, such as:

.Internet of Things, or IoT);

.Artificial intelligence;

.Cloud computing;

.Machine learning, among others.

Therefore, it is a concept in which it is possible to apply the technologies that we talked about above in the logistical routines of organizations, promoting greater integration between sectors and improving supply chain management.

What are the positive impacts of Supply Chain 4.0?

How is this change bringing significant changes to the organizations that adhere to Supply Chain 4.0? See the main ones below.

Process automation

With the insertion of technologies such as IoT, artificial intelligence and machine learning, it is possible to automate a series of important steps in the supply chain, such as:

. analysis of inventory and sales indicators;

. checking in and out of items;

. integration with solutions used in other market sectors;

. ease of planning and replacing items.

Greater agility in activities

With the use of automation and control technologies, it is possible to have greater agility in the internal processes of the supply chain. A separation of items to be taken out of stock and sent for transportation is done in an agile way, due to the ease generated by the software designed for this purpose.

The same occurs when items arrive in stock. The system already points out, in an automated way, the best place for automation, something that would take much longer if the analysis were done manually.

Greater control of the production chain

With the Internet of Things and solutions that implement artificial intelligence and machine learning, it is possible to observe how the processes of the production chain occur and whether they are, in fact, being effective and productive, or if there are bottlenecks that prevent the achievement of results.

What are the main challenges of Supply Chain 4.0?

With the benefits, there were also a number of challenges for the implementation of Supply Chain 4.0, along with Industry 4.0. See the main ones below:

.reconcile the dichotomy between the focus on flexibility or cost, as this involves a higher initial expenditure;

.handle a larger volume of data;

.having trained professionals to work in this new scenario;

.update the machinery to implement technological solutions;

.know how to customize production.

Understanding the benefits and challenges of Supply Chain 4.0 is essential to understand not only its importance, but also to minimize chances of problems that can cause production losses, failures and bottlenecks in processes.

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About the Blog

The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.

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