For many business leaders, COVID-19 will go down in history as the straw that broke the global supply chain. The decimation that the pandemic exerted on logistics was felt keenly at the core of GVC hubs in China, Europe, and the US – and also sent ripples across supply networks worldwide. The question many are asking is: was the supply chain ever fit for purpose?

The modern age is characterized by quick changes and uncertainty – just not to the extent that we have witnessed with a global pandemic. But it may be the catalyst needed for logistics execs to question their infrastructure and refocus their efforts. By utilizing technology, convergence, and prioritization for smarter supply – organizations can disrupt the status quo in favour of a more robust system that can withstand future crises.

What is industry 4.0?

It’s the utilization of modern smart technology to drive ongoing automation across traditional manufacturing and industrial practices. And over the last few months, it has become paramount for supply and value chain leaders to apply these innovative solutions across their distribution network, moving them from aspiring to delivering.

Technology

Successful digitization can only occur once you have the technological infrastructure to support it. Big brands like McDonalds, Unilever, and Cisco have renovated both their hardware (the technological tools which help to advance equipment) and software (the programmes which streamline data, application, and connection_ systems in order to deliver valuable changes across their operations and territories.

Convergence

Alongside new business realities and cultural readiness, these technologies will help suppliers to realize the convergence of supply chain planning and execution. Enterprise Resource Planning (ERP) software has helped to fuel this change, but it is only with the advent of modern supply-chain management (SCM) that convergence can feasibly become reality.

SCM helps staff to manage multiple ecosystems continuously in real time. When the supply chain has been disrupted by external threats – like issues with channel partners, suppliers, or outsourced manufacturers – SCM can predict the impact of external events and react accordingly, effectively unifying, or converging the supply chain.

Prioritization

Armed with technology and convergence, suppliers can now begin to make more informed decisions around their approach to supply and demand. Being able to effectively prioritize goods in and out has always been important, but now it’s life and death.

There have been significant oscillations in consumer demand between lockdown and the subsequent reopening efforts and, as such, it pays dividends to know when to contract and expand accordingly. Businesses like Apple, Walmart and Johnson & Johnson wield some of the more impactful supply chain operators worldwide and this is down to their ability to predict the needs of the end-user, when they’ll want products, and how to cater to them.

How does the redefining of industry 4.0 help you?

· Efficient optimization and visibility across the supply chain

· Enhancing customer communication

· Increased collaboration between supply chain partners

· More effective order tracking and delivery

· Decrease in negative cost effects

Continue the debate at NG Supply Chain Summit NA, a GDS Summit, where we bring together senior supply chain executives who are actively seeking to share, learn, engage, and find the best technology solutions.

GDS Group hosts experts to help experts. We strive to provide an atmosphere for our attendees that enables them to confidently lead their companies through major transformation projects. For information on upcoming events, view our view our Digital Summits. To remain current on our activities, visit GDS Group on LinkedIn | Facebook | Twitter.